Is the Fed About to Unleash a Crypto Liquidity Surge?
The post Is the Fed About to Unleash a Crypto Liquidity Surge? appeared on BitcoinEthereumNews.com.
Prediction markets are pricing in a 98% chance that the Federal Reserve (Fed) will deliver a 25 basis point rate cut at its late October meeting. Meanwhile, there is also speculation that the central bank may also soon signal an end to quantitative tightening (QT). Crypto traders are watching closely, drawing comparisons to the 2019 liquidity surge that boosted Bitcoin and sparked hopes for another strong rally in November. Sponsored Sponsored Prediction Markets and Macro Signals Point Dovish The upcoming Federal Open Market Committee (FOMC) meeting is highly anticipated in traditional and digital asset markets. Investors are looking for indications of a policy shift. Reducing interest rates and ending QT could boost financial system liquidity, which has historically supported risk assets. Data from Polymarket shows a 98% probability that the Fed will cut rates by 25bps at its October 28-29 meeting. Fed Rate Cut Bets. Source: Polymarket Data on the CME FedWatch Tool corroborates this outlook, showing that the Fed’s decision to cut rates today is near certain, at 99.9%. Meanwhile, discussions are intensifying about the possible end of QT, a process by which the Fed reduces its balance sheet by not reinvesting in maturing securities. Research by the Federal Reserve Bank of Cleveland stresses the need for maintaining ample reserves. The market instability of September 2019, when reserves dipped too low, prompted central bank intervention and liquidity injections. At that time, Bitcoin prices roughly tripled over several months. Sponsored Sponsored Crypto Markets Eye a 2019-Style Rally Against these backdrops, many crypto analysts are connecting current events to potential market impacts. “The FOMC meeting is tomorrow. Papa Powell is expected to cut interest rates by 25bps. Rumors are floating that we could see the end of QT tomorrow. On top of that, the US-China trade deal could be finalized soon.…
Filed under: News - @ October 29, 2025 6:26 am